Watts Water Technologies Inc (WTS)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,252,200 | 2,056,300 | 1,979,500 | 1,809,200 | 1,508,600 |
| Total current assets | US$ in thousands | 1,083,500 | 1,061,000 | 950,600 | 861,500 | 709,500 |
| Total current liabilities | US$ in thousands | 417,900 | 405,800 | 378,700 | 408,500 | 312,800 |
| Working capital turnover | 3.38 | 3.14 | 3.46 | 3.99 | 3.80 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,252,200K ÷ ($1,083,500K – $417,900K)
= 3.38
Working capital turnover is a key financial ratio that measures how efficiently a company is utilizing its working capital to generate sales revenue. Watts Water Technologies Inc's working capital turnover has shown some variation over the past five years.
In December 31, 2020, the working capital turnover was 3.80, indicating that the company generated $3.80 in sales revenue for every dollar of working capital invested. This ratio improved slightly to 3.99 by December 31, 2021, suggesting an increase in efficiency in utilizing working capital.
However, there was a decline in the working capital turnover to 3.46 by December 31, 2022, indicating a possible decrease in efficiency in managing working capital. This trend continued with a further drop to 3.14 by December 31, 2023, suggesting that the company may be facing challenges in optimizing its working capital for sales generation.
The ratio saw a slight improvement to 3.38 by December 31, 2024, indicating a potential recovery in the utilization of working capital for generating sales revenue. Overall, Watts Water Technologies Inc's working capital turnover ratio has experienced fluctuations, and the company may need to focus on improving efficiency in managing its working capital to enhance its financial performance.
Peer comparison
Dec 31, 2024